This story has been updated from 2:45 pm EST with additional information and analysts comments.
NEW YORK (TheStreet) -- Shares of Vera Bradley (VRA) fell as much as 8% on Wednesday following the handbag maker's nearly 50% drop in quarterly profit.
Vera Bradley reported fiscal second-quarter net income of $7.6 million, or 19 cents per diluted share, compared to $15 million, or 37 cents per diluted share in the same quarter last year. The company previously projected earnings of 18 cents to 20 cents per share on revenue of $113 million to $120 million.
Revenue decreased 4.2% from the prior year's second quarter to $120.1 million. Gross margin fell to 53.3% from 57.2% a year ago, due to increased online promotions.
The company said comparable sales fell 5.3%, as a 14.2% decline in store sales partially offset by a 9.3% increase in e-commerce revenue. Indirect sales were down 18% to $41.2 million.
For the current quarter, the Vera Bradley forecast per share earnings from continuing operations of 18 cents to 20 cents, and revenue of $123 million to $128 million. Analysts polled by Thomson Reuters projected earnings of 26 cents a share on revenue of $126.7 million.
The company raised the low end of its revenue outlook for the year by $10 million to a range of $520 million to $530 million. Vera Bradley backed its earnings guidance of $1.00 to $1.10 per share.